A stamp duty is basically levied by the state and paid for registering a document, basically a transaction paper or agreement between 2 or more parties, with a registrar. It is usually an amount which is fixed based on the document's nature or charged at specific percentage of an agreement's value mentioned in the same document. It must be noted that stamp duty isn't uniform for all the states and differs for varied documents. For example, for registering the property paper, the stamp duty is chargeable on the value of transaction or the circle rate (the minimum property price, as specified by the government), whatever is higher. It can also vary on the basis of the gender of the owner. For example, in Delhi, a female is required to pay a stamp duty of 4%, in comparison to a man. Similarly, men in Haryana are required to pay an 8% stamp duty within the urban areas, whereas the same for men in rural locations is 6%. Here, discover how stamp duty for a gifted property may vary in accordance with the mode used for transferring it.
According to the Transfer of Property Act, transferring of a gifted property/house needs to be put into effect by the registered document/instrument, signed by the person or on behalf of an individual gifting the house/property. It should also be duly attested by a minimum of 2 individuals. It must be noted that the stamp duty amount as well as the registration charges that are chargeable, for the gift deed, are usually similar to the amount payable during a regular sale.
How Stamp Duty for Gifted Property Varies in Accordance with the Transfer Mode?
Suppose you have a brother who is an autistic patient and he inherits a land from your father. Now, since you have been taking care of your brother, he wishes to transfer the land and your sister raises an objection during the transfer of land in your name. In such a case you must make an effort to avoid any legal challenges. Now, let us assume that you as well as your brother have inherited the property/land via a Will created by your father. Also, let’s assume that no one has challenged the Will until now and you as well as your brother are the sole owners of that property/land. Given such a scenario, your brother could relinquish his entire share in that property/land through a release agreement or gift deed, with the registration done in your name or favour.
But, here you must remember that your sister can challenge this deed, since your brother is already suffering from the autism disorder.
In such a case, she has all the rights to challenge the deed. Hence, this gift deed or release deed that has been executed can be well supported through a medical certificate provided by any medical expert who is an expert in the area of autism spectrum disease/disorder. This will help you to certify that your brother is fully capable of assessing as well as taking a well-thought judgement. In such a case, it is also advisable that the medical expert is also witness to the gift deed or release deed’s execution. We suggest that this medical practitioner also witnesses the execution of the gift deed or release deed as that would help you to prove the deed when it is challenged.
What Happens When the Son Need to Transfer the Ownership of Land from his father?
Now, consider another situation where a son needs to transfer the ownership of land from his father. In such a case, the charges for stamp duty may differ. Assuming that the father is the absolute land owner as well as the land isn’t a part of the ancestral property. Also, let’s consider that the land isn’t held by the father as the HUF or Hindu Undivided Family karta.
In such a case, the father can at his discretion, either choose to transfer the property/land in your name by duly registering and executing a sale agreement/deed for a sale consideration that is valid and should typically not be any lower in comparison to the market rate or circle rate, prevailing in that area where the father’s land/property is situated. Alternatively, the father can gift the property to the son by duly registering and executing the gift deed in his favour as per the Transfer of Property Act, 1882 as well as the Indian Registration Act, 1908. Given such a scenario, the amount of stamp duty for transferring the land/property will differ in accordance with the mode of transferring of the father’s land as well as on the location of the property/land. Also, the stamp duty amount payable will be calculated on the basis of the applicable and relevant state laws.
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